North Carolina Down Payment Support Programs

Payments Gateway - These systems will be the deposit Assistance Program as well as the Mortgage Credit Certificate.

Should you qualify for one of those programs and also you purchase a house between December 1, 2009 and January 1, 2009, you can even qualify for the $8,000 tax credit merely enacted into law.

First, who is a first-time Home Buyer? A first-time Home Buyer is someone who has not owned a home in the prior three years. Here is the exact same qualifying definition for the $8,000 tax credit.

All home owners can claim an itemized deduction. The MCC takes this a step farther. An MCC “reduces your tax liability predicated on a percentage of the mortgage interest that you pay.

In case you qualify for the MCC, you'll be able to claim 20% of the interest you pay as a credit on your federal income taxes on your mortgage. It is possible to save as much as $2,000 on your taxes.

You will manage to join this with the $8,000 tax credit, should you qualify for the MCC, for 2009. This could reduce the tax liability of a buyer's .

Who Qualifies for an MCC?

Who qualifies for an MCC is based in your income and also the purchase price of the property you are purchasing. Household income is defined as the “gross income of the mortgagor and any other person anticipated to reside in the home who is 18 years of age or older.”

House price limits that apply in Durham, Orange and Chatham Counties and the income are listed below.

MCC Income Limits 1 Man $61,500 2 Men $61,500 3 Men $70,500 4 Men $70,500

MCC Sales Price Limitations New House $220,000 Existing Dwelling $210,000

Who Qualifies for Down Payment Assistance?

Home buyers that need help with their deposit and closing prices may be able to get down payment assistance - or, put simply, interest-free, deferred second mortgages up to $8,000. The buyer only needs to pay $1,000 of their own funds and the load would pay up to .

This program has more rigorous income limitations than the MCC program outlined above. Like the MCC program, it can be utilized in conjunction with all the new $8,000 tax credit on home purchases between January 1, 2009 and December 1, 2009. The deposit assistance, nevertheless, can't be applied together together with the MCC. This is an either or scenario.

House price limits that apply in Durham, Orange and Chatham Counties and the income are listed below.

Down Payment Assistance Income Limits

1 Person $39,950 2 Men $45,650 3 Individuals $51,350 4 Individuals $57,050

Down Payment Assistance Sales Price Limits New Home $210,000 Existing House $210,000